The government’s Public Private Partnership Appraisal Committee (PPPAC) has given in-principle approval to the Ministry of Civil Aviation’s proposal for the third round of airport privatisation, covering 11 airports across five bundles, according to a government document.
The issue of bidder concentration gained prominence following the previous round of airport privatisation, in which the Adani Group won bids for all six airports on offer. The move comes amid concerns over the potential risks of oligopolistic concentration and excessive leverage in the airport sector. In response, the Ministry of Civil Aviation has proposed capping the number of airport bundles that can be awarded to a single bidder. At the time, the PPPAC had rejected key recommendations from the Finance Ministry and NITI Aayog, including a limit of two airports per bidder and a requirement for prior airport operations and management experience.
The modalities of the proposed cap are being finalised and would be submitted with the proposal seeking the PPPAC’s final recommendation, according to the Record of Discussion dated August 20.
The proposal will now move towards securing the PPPAC’s final approval, following which it will be placed before the Cabinet Committee on Economic Affairs (CCEA) for consideration.
